Surplus Theory of Karl Marks

1257 Words6 Pages
Marx’s Theory of Surplus Value Marx’s Theory of Surplus Value Karl Marx theories and the books revolutionised the world. His concepts on the equality for all gave birth to a new system of governance. Introduction Heinrich Karl Marx was a renowned sociologist of the 19th century (1818-1883). He presented several theories, books and essays which later led to socialism. Marx was exponent supporter of creating a balance between the 'Petit bourgeoisie' and 'Lumpen Proletariat'. Thus, he overwhelmingly objected the capitalism. His work like The Communist Manifesto, Das Kapital and political economy revolutionised the whole world. Communist were all Marxist in nature. The theory of Surplus Value is part of political economy, written by Karl Marx. Karl Marx’s theory of class conflict, theory of alienation and theory of surplus value are interrelated as all these theories speak against the capitalism or market economy. The further detail will only illustrate the Marx theory of surplus value and its validity in the contemporary affairs. DEFINITION: (in Marxian economics) the part of the value of a commodity that exceeds the cost of labor, regarded as the profit of the capitalist. Explanation of the theory of surplus value The price of commodity produced is determined by the labour involved in that commodity. In the complex capitalist environment labourer provides his services to his boss in order to produce a commodity but in response to it he just gets a small chunk of the profit. The remaining profit goes to the boss or who is responsible to conducting that business. The theory of surplus value says that this labourer, his efforts are helpful, meaningful to the owner of that business as the surplus amount goes to the boss instead of that labourer who is actually responsible for carrying out the whole business. Thus, Karl Marx is of the view that a labourer
Open Document